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PaychexFRA:PCX +2.37%85 EV-to-EBITDA is 14.91 as of Jul. 27, 2026, which is 19% below its 10-year median of 18.45. GuruFocus rates FRA:PCX with a GF Score™ of 85/100 and a GF Value™ of €136.11 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,958 Software companies, Paychex ranks worse than 63.53% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Paychex's enterprise value is €38,564 Mil.
Paychex's EBITDA for the trailing twelve months (TTM) ended in May. 2026 was €2,587 Mil. Therefore, Paychex's EV-to-EBITDA for today is 14.91.
The historical rank and industry rank for Paychex's EV-to-EBITDA or its related term are showing as below:
FRA:PCX'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 11.04 Med: 18.45 Max: 26.28
Current: 14.51
During the past 13 years, the highest EV-to-EBITDA of Paychex was 26.28. The lowest was 11.04. And the median was 18.45.
FRA:PCX's EV-to-EBITDA is ranked worse than 63.53% of 1958
companies
in the Software industry
Industry Median: 10.28
vs FRA:PCX: 14.51
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
Paychex (FRA:PCX) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Paychex's share price for today is €98.51.
Paychex's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €4.184.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Paychex's EV-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:PCX vs ADSK, ROP, MSTR: EV-to-EBITDA Comparison
For the Software - Application subindustry, Paychex's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Paychex EV-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Paychex's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Paychex's EV-to-EBITDA falls into.
Paychex's current Enterprise Value is €38,564 Mil.
Paychex's EBITDA for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €2,587 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Paychex (FRA:PCX) has a EV-to-EBITDA of 14.91 as of Jul. 27, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Paychex. This is 19% below median its historical median of 18.45. Over the past decade, Paychex's EV-to-EBITDA has ranged from 11.04 to 26.28. According to the industry distribution chart, Paychex ranks #1244 out of 1958 companies in the Software industry, placing it in the top 63.5%.
Is Paychex's EV-to-EBITDA too high?
Paychex's current EV-to-EBITDA of 14.91 is 19% below median its 10-year median of 18.45. Over the past 10 years, this metric has ranged from a low of 11.04 to a high of 26.28. The Software industry median EV-to-EBITDA is 10.28. Paychex's value of 14.91 is 45% above this industry median. Based on the distribution chart, Paychex ranks #1244 out of 1958 companies in the Software industry, which is below the industry midpoint. Overall, Paychex has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paychex's EV-to-EBITDA compare to ADSK and ROP?
According to the Software industry distribution chart, Paychex ranks #1244 out of 1958 companies for EV-to-EBITDA. This places Paychex in the lower half of its industry. The industry median EV-to-EBITDA is 10.28. Paychex's value of 14.91 is 45% above this benchmark. Historically, Paychex's own EV-to-EBITDA has ranged from 11.04 to 26.28 over the past decade. While the company's 10-year median is 18.45 vs. the industry median of 10.28, Paychex has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.28, based on 1,958 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paychex's current EV-to-EBITDA of 14.91 is 45% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Paychex. For the Software industry, the median EV-to-EBITDA is 10.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paychex's current EV-to-EBITDA is 14.91, which is 19% below median its own 10-year median of 18.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paychex stock overvalued right now?
Based on GuruFocus' analysis, Paychex (FRA:PCX) is currently considered Modestly Undervalued. The stock's GF Value™ is €136.11, compared to a current price of €98.51 — trading 27.6% below its estimated fair value. The current EV-to-EBITDA is 14.91, which is 19% below median its 10-year median of 18.45 and 45% above the Software industry median of 10.28. Paychex's overall GF Score™ is 85/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Paychex (FRA:PCX), the current EV-to-EBITDA is 14.91 as of Jul. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Paychex (FRA:PCX) Overvalued in 2026?
Based on GuruFocus' analysis, Paychex stock appears to be undervalued.
The current stock price of €98.51 is trading 27.6% below its estimated GF Value™ of €136.11.
GuruFocus considers Paychex to be Modestly Undervalued.
Key valuation signals for FRA:PCX:
EV-to-EBITDA: 14.91 (19% below median its 10-year median of 18.45)
GF Value™: €136.11 vs. price of €98.51 (27.6% below fair value)
Industry Position: 45% above the Software median (#1244 of 1958)
No single metric tells the full story. See the FRA:PCX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paychex is a cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. The firm also provides HR outsourcing services, including professional employer organization, or PEO, offerings, enabling clients to reduce HR overhead. Paychex primarily targets small and midsize businesses, although its acquisition of Paycor in 2025 signals the firm's aspirations to expand into the midmarket segment, serving firms with more than 100 employees. As of fiscal 2025, Paychex has approximately 800,000 clients and manages payroll for one in 11 workers in the United States.
85GF Score
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